In February, China’s clothing giant, Dalian Wanda Group, announced it was buying 100 percent of Indian clothing maker, Balinese Clothing Manufacturers, for a reported $150 million.
The move was a big deal for Dalian, a Chinese-based conglomerate with a global reach.
Balinese, which makes shirts, coats, shorts and more, also produces the iconic “T-shirt” that became synonymous with American fashion, and has been the subject of several lawsuits in India.
Dalian also owns the iconic brand Balinese Group, which has also faced lawsuits in the past.
“We are excited to continue to partner with Balinese in creating quality, quality products for our customers worldwide,” said Dan Deutsch, chief operating officer at Dalian.
In February 2017, Dalia, which was founded in 1998, became the first Chinese company to acquire a majority stake in a U.S. apparel company.
The company also recently announced a new partnership with the brand, Balani, which is making a $15 million investment to expand its brands globally.
The news was greeted with great excitement in India, where Balinese is the third-largest apparel brand in the country.
“Dalian is a very exciting company to work with and a good one to do business with,” said Balinese founder and CEO Shashi Tharoor.
“Balinese has a great brand, a lot of experience, a strong marketing and distribution team, and we believe it will be an excellent fit for Dalia.”
The Dalian acquisition of Balinese came after the Chinese conglomerate invested in the company’s Indian unit in 2015.
It now employs approximately 1,500 people in India as well as in China.
“The Dalian Group will continue to build its global footprint through investments in India and China,” said Manish Ahuja, managing director of the Dalian India unit.
“With the Diamine deal, we now have a global apparel platform that has the potential to grow at a very fast rate and create jobs for Indian workers.”
In addition to Balinese’s apparel business, Diamines apparel unit includes clothing, footwear and accessories division, among others.
The $150-million deal, the largest acquisition in Indian history, is expected to result in an additional 2,400 jobs at the Dias clothing group.
According to the Wall Street Journal, Balini’s revenue in India will grow from $9 billion in 2020 to $16 billion in 2022.
The Indian apparel giant will also be investing $50 million to expand the DIA division to create a $25-million research and development center in India to create new products.
“India is one of the fastest growing economies in the world and the company will be creating jobs and strengthening our relationship with Indian employees and communities,” said P.V. Narayanan, Dias chief executive officer.